CHAPTER-I

INTRODUCTION

1.1 Background of the Study

Marketers spend a large sum of money on advertising and face a major
challenge in influencing the purchase decision of consumers favorably towards
their product or service. The final goal is to influence the purchase decision of
consumers as most marketers realize that purchase decision is the end result
of a long process of consumer decision making. Consumer buying
process is the complex process and includes the problem recognition,
information search, evaluation of alternatives, purchase decision and
post purchase evaluation. Advertisers need to know the specific need that
consumers are striving to satisfy and how these needs translate into purchase
criteria, how consumers collect information from various sources and how this
information is used to select from among competing brands and a purchase
decision is taken (Ingavale, 2013).

The subject of the effect of advertising on the consumer demand is complex. It is

believed that economic and social factors affect on consumer demand.
Along with these factors advertising pushes the consumer demand. Advertising is
a potent communication tool which plays a very important role in consumer
decision making. Advertising is meant to convey a message to the prospective
customer or the audience. Advertising acts as an advisor and the message is the
factor of conversion meant to bring about the person towards the product
and its purchase (Tiwari, 2017).

Advertising is the communication link between the seller and the buyer or the
consumer. It does not simply provide information about products and services but

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is an active attempt at influencing people to action. In other words,
advertising does not end with the flow of information from the seller to the
buyer; it goes further to influence and persuades people to action (Ingavale, 2013).

Electronic advertising is an effective way to deliver promotional customized

offerings and relevant marketing messages to targeted consumers. Electronic
advertising play an important role to effect consumer preferences, build a positive
consumer attitude and influence their purchase decisions about the
products/services offered in advertisements. Electronic ads are increasingly
appealing marketing communication tools to reach targeted consumers in different
ways and in different locations. Electronic advertising not only include TV and
FM advertisements, but also any type of marketing communication that executed
with the use of web, social media and/or mobile technology. Advertisements
play a major role in changing the behavior and attitude of consumers towards
the products shown in the advertisements (Takemura, 2012).

The advertisements not only change the way of product is consumed by user but
alter the attitude with which they look at the product. Consumer attitude and
behavior hugely influenced by advertisements. Purchase attitude and behavior is
influenced by variety of advertisements which cover product evaluation and brand
recognition. As the advertising format landscape continues to change, marketers
and advertisers must gain insights into what types of advertising work better to
reach and gain consumers (Rai, 2013).

1.2 Focus of the Study

The main focus of this study is to find out how electronic media advertising affects
the behavior of the people in buying Coca Cola. Many important decisions have to
be made before under taking the advertising program. It is certainly one of the
most important and complex decision facing business executives. Major decision
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areas in developing advertising program include setting the advertising objectives,
deciding on the advertising message, deciding on the media and evaluating
advertising effectiveness. Human behavior is very complex process. Behavior is
the sum total of observable human activities. No two people always behave in the
same way. Advertisers must understand the customer's behavior and must present
the advertisement in such the way that persuades the people to buy the particular
product. Advertisers must understand how customer select, buy, use and dispose
products. They must know customer motivation

In this paper the researcher prime aim is to study the relationship on consumers'
attitudes, credibility towards advertising and its subsequent effect on consumers
buying behaviors. There are many studies had been conducted on how advertising
works, advertising effectiveness, about advertising. But little effort has been made
to find the consumer perspective towards advertising and its consequent effect on
consumers buying decisions. Before state the research questions let to discuss little
about how advertising works and advertising influences on consumers’ attitude.

Advertising works by influencing consumers' attitudes towards a product, service,

or idea, as to increase their likelihood of adopting a particular purchase behavior.
Given advertising's attitude-modifying nature, its objectives should be structured
around attitudes. This facilitates the formulation of a strategy of consumer
attitudinal change.

1.3 Statement of the problem

Advertising helps to lower the prices due to mass selling. It also encourages
competition and that too leads to lower price. For advertising to work, it required
the specification of sound and measurable objectives. Thus, selecting objectives
that can be affected by advertising and that allow for efficient and continuous
testing is crucial. One of the most popular is the "Hierarchy of Effects". According
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to this model, the purpose of advertising is to affect some level of the hierarchy
(i.e. awareness, comprehension, or conviction). This theory also claims that this
effect, combined with those of other marketing variables, leads to sales.

According to psychologists, attitudes are constituted by perceptual and preferential

components. This means that people past experiences predispose them to respond
in predictable ways, on the basis of certain perceptions. Attitude, therefore, can be
seen as the link between psychological and behavioral components. Since attitudes
reflect perceptions and, hence, indicate predispositions, advertisers can take
advantage of their knowledge about an audience's attitudes to design inputs aimed
at influencing their perceptions and, thereby, modifying their predispositions to
behave. This is the underlying rationale behind the workings of advertising, in
terms of this model.

Advertisers select communication media that effectively and efficiently reach their
intended audiences where they are, exposing them to their ads (exposure). Upon
this exposure, the ad captures and maintains the audience's attention (mental
processing capacity) through its originality and relevance with respect to people's
needs and motivations. Consumers also have a perception regarding each of these
salient characteristics in the "ideal" product. In the case of mature products these
criteria are well defined; however, in new products that is not true. Using these
criteria, a consumer then chooses a particular brand by comparing his/her ratings
of each brand with his/her ratings of the ideal brand. The brand that compares
most favorably with the "ideal" has the highest probability of being selected for
purchase.

Thus, from what has been indicated here, advertising works by maintaining or
shifting attitudes regarding the salient characteristics of a product and their ratings,

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rather than affecting directly sales or a level of the hierarchy. The researcher will
attempt to get insight on consumer attitude, perception, credibility towards
advertising and its subsequent effect on buying decisions and also try to find out
the answers of following research questions.
 What kind of advertisement media is preferred by different group of
people? (Age, gender and education)
 What is the reaction of the people regarding present situation of electronic
media advertising?
 Does the advertisement from electronic media attract people's attention?
 What is best electronic media for the Coca-Cola?

1.4 Objectives of the study

The main objective of this thesis work is to examine the impact of electronic
advertising on buying decisions of Coca-Cola consumers in the Kathmandu
Valley. And specific objectives of the study have been outlined as follows:
 To analyze the effect of television and FM advertising on creating
awareness of Coca-Cola buyers in Kathmandu valley; and
 To examine the impact of television and FM advertising on buying
decisions of Coca-Cola buyers in Kathmandu valley.,

1.5 Significance of the Study

Advertising is one of the most widely used promotion tools. They have become a
part and parcel of life. For the sake of making consumers well informed, it is
becoming more important in advertising to provide suggestion on various aspects
of daily life. Advertisement help to collect information and knowledge needed to
make pleasant for this different advertising media were used such as indoors,
outdoors, direct and display. Among different media has. The merit of vision,
sound, motion, selective and flexible, mass communications etc. and at present,

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this advertising media has the weakness of shortest life, culture problem, time
taxing, costlier limited area, etc. The major significances of this study are as
follows;
 Advertising promotes product consisting of goods, services, ideas,
experiences, people, places, organizations. The products can be promoted in
various forms locally, nationally, globally; consumer, industrial trade;
products, institutional; individual co-operative. Advertising has proved to
be effective source of information than other sources.
 Advertising increases the demand for the products and services and helps in
the installation of up to date machinery, consequent reduction of cost of an
article and in the introduction of mass production.
 Advertising is not only beneficial to the producer and retailer but also to the
consumer given the complex nature of advertising, it is important for those
involved in the field, or just interested in its workings, to have an
understanding of its underlying communication processes.
 It is important to advertisers, advertising agency and copywriters to
understand how consumers react to advertising and its subsequent effect on
buying decisions. This study tries to find out the impact of advertising
towards buying behavior of consumer.
 Researcher believes that this study will be beneficial directly or indirectly
to the advertisers, Advertising Agencies, Media, Copywriters and
Businessmen to know about consumers' attitude and credibility towards ads
and the factors affect consumers' to behave the way they do and
accordingly design, build and communicate their message about product
and services to the targeted group effectively.
 Similarly, this study will equally beneficial to the students of marketing to
get insight about consumer attitudes towards advertisement and subsequent
effect on their buying decision process and it is beneficial to the future

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 researcher to build research problem in the subject. The other people who
interested on its working are also can get the benefit of the study.

1.6 Limitations of the study

No study can be free from its own limitations. So, the present study has also some
limitations. Reliability of statistical tools used and lack of research experience are
the major limitations and some other limitations can be enlisted as follows:
 The study is limited to a survey of respondents and interviews of people
within urban areas of Kathmandu and is based on primary data.
 As this study is only based on the certain sector of the community it has
some limitations.
 It studies only the effect of advertising on the buyer's behavior with specific
reference to Coca Cola.
 Judgmental sampling technique is used to select the respondents for the
purpose of interview.
 Questionnaire and interview have been used to collect primary data and
their limitation also applies equally.
 The study is limited in nature due to time limitation.

1.7 Organization of the study

For the systematic presentation of the report the research is divided into five
chapters as follows.

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Chapter-I: Introduction
The first chapter is introduction which includes background of the study, statement
of the problems, objectives of the study, importance of the study and limitations of
the study along with organization of the study.

Chapter-II: Review of Literature

The second chapter is review of literature is done to know what research had been
dome in the related topic in previous days and what is to be done at present or in
future. In this chapter which gives the theoretical concept and review of related
materials i.e. review of books, review of thesis, review of journals, newspapers,
magazine etc. Research gap also includes in this chapter.

Chapter-III: Research Methodology

This chapter includes introducing research design, data collection, nature and
source of data, data gathering procedure and statistical tools etc.

Chapter-IV: Presentation and Analysis of Data

Presentation and analysis of data have been made in the fourth chapter. The data
collected from various year budget speech, economy survey etc. have been
tabulated in their sequential order and data have been described, analyzed and
projected with statistical tool as well as general accounting and taxation principle.
It also includes major findings of the study.

Chapter-V: Summary, Conclusion and Recommendations

This chapter is the general idea of the study and it represents all the opinions of the
research as far as possible. Summary, conclusions and recommendations are
mentioned in the last chapter of the study. Bibliography, appendices and research
proposal is presented at the end of this research study.

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 CHAPTER- II
REVIEW OF LITERATURE

This is the chapter, of literature review which deals with the literature of previous
studies on the use of Electronic Media in Advertising. It covers studies research
work, published articles conducted with Electronic Media Advertising and Nepal
Television. This chapter provides some conceptual approaches of advertising and
review of related topics. This chapter provides different information about
advertisements from various articles, books, thesis, websites etc.

2.1 Conceptual Framework

2.1.1 Concept of Advertising
An advertisement is a form of persuasive communication with the public. The
communication is usually one-sided in one direction from the advertiser to the
public. The members of the public are free to respond to it in their own way; the
response is at an individual or family level. There is little or no dialogue with the
public; advertising forces itself upon the public. At the same time, especially in a
democracy with a market economy such communication is required so that
intelligent choices are made. Therefore the advertising mere goal is to
communicate message about an idea, product or services to the targeted consumer
or group of consumers. Advertising is made to the public through specified media
device. Advertising is a non-personal form of communication; it is targeted to the
mass through identified sponsor appeal for the action to the targeted consumers.

The term advertising has been derived from the original Latin word 'advertere'
which means 'to turn' the attention. An advertisement prime objective is to get
attention to the particular product or service or an idea that would be advertised.
Advertising has many facets, sphere, dimension and definitions. Advertising is to

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communicate a message about a product or service or an idea through media
(Radio, Television, Newspapers, Magazines, Hoarding Boards, Billboard etc.) to
the targeted customer or consumers by the producer or marketer of the product.

Many scholars, researchers, economists, sociologists, social scientists, marketers,

and consumers have defined advertising in their own way. The some major
definitions of advertising are:

The official definition established by The American Marketing Association's

Committee for Definitions is "Any paid form of non-personal presentation of
ideas, goods or services by an identified sponsor, Journal of Marketing".

Advertising consists of all activity involved in presenting to a group, a non

personal, oral or visual, openly sponsored message regarding a product, service or
ideas. This message called and advertisement is disseminated through one or more
media and is paid for by the identified sponsor (Aaker, Myres & Batra, 1996).

Advertising is a form of communication intended to promote the sale of a product

or service to influence a particular cause to gain political support, to advance a
particular cause or to elicit some other response desired by the advertiser" (Ibid).

Thus advertising is defined as a form of mass communication where as such

message is distributed by marketers through different sources by soughing and
acquired by the consumers. It is referred, as one-personal presentation because
communications is only two viz. publication and electronic transmitter the radio
and television.

Clearly advertising includes the followings form of message the message carried
in newspaper and magazines or outdoor broads or street car, buses and train, cards

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and poster. In radio and television broadcast and in circulation of all kinds,
whether distributed by mail, by person through tradesmen. Or by insert in
packages dealer help materials: windows display and country display materials
and efforts: stone sign: houses organs when directed to dealers and consumers:
nation pictures used for advertising and novelties, bearing advertising message or
signature of the advertiser (Johnon, 1998).

All above mentioned definition except last one tells that advertising is a mass
communication media, which help to sell goods.

2.1.2 Advertising and other Promotional tools

Electronic Media is one of the elements of promotion. "Promotion is the
company's attempt to stimulate sales by directing persuasive communication to the
buyers. Electronic media is a component of marketing and one of its principle
promotional arms. The characteristic of all marketing activities is that they are
undertaken to increase the sale. There are many tools of marketing which help to
increase the sale of goods or services. All these tools are called promotional tools.
The characteristics of all these tools are that they are undertaken to increase the
sales of goods and services. These tools are distinguished from one another by the
methods they used to attain goal. The main difference between advertising and
other promotional tools is that advertising is controllable to a large extend and
reaches a diverse group of audience at the same time (Kotler, 1994).

2.1.2.1 Advertising and Sales Promotion

Electronic Media is usually addressed to large group of people but the distinction
can be made as follows. Sales promotion is the temporary offer of a material
reward to customers or sales prospects, whereas advertising is the communication
of information. From the definition, it is apparent that Electronic Media may well
be the medium through which a sales promotion on after is made. The distinction

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is also bringing out an important fact about Electronic Media. An Electronic
Media by definition transmits a persuasive message, but the element is not
necessarily the ads itself. When a sales promotion offered is the subject of
advertisement the promotion is the persuasive element and advertisement is an
information channel (Kleppner, 1997).

For most forms of sales promotion out distinction can be used with little difficult
free goods offer ( One bottle of coke free with one case purchase) display
allowance (price reduction in return for store display) and count/recount offers.
Price reduction nosed on retail movement during a specified time period all are
temporary and they all offer a storekeeper a material reward likewise consumer
promotion involving samples, discount coupons, premiums, contests and
sweepstakes all offers at least temporarily the prospect of reward.

2.1.2.2 The basic distinction between Electronic media and salesmanship

It can be stated as follows "When a persuasive communication is directed toward a
single individual it is called advertising" (Ibid). Electronic Media are presented to
a group of people whom the advertiser does not know as individuals, whereas a
salesman spends much of his time deciding which people he/she should see for
individual approach.

2.1.2.3 Electronic Media and Publicity

Publicity is an effort to make available certain information to the public. It is the
sum total of those activities that are directed to the flows of information to the
knowledge of public. Perhaps, the association of teachers of marketing and
advertising America once gives the best definition. According to its terminology
"Publicity is any form of non personal presentation of goods, services or ideas to a
group, such presentation may be or may not be sponsored only by the one
responsible for it and it may or may not be paid for". In this sense, Electronic

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Media is only a type of publicity. That is, term "Publicity" is more comprehensive
than the word Electronic Media itself. Therefore it can be said that all Electronic
Media is publicity but all publicity is not advertising (Kleppner, 1997).
.
Both the words are similar in three respects. First, they deal with the conveying
information regarding the goods or services or ideas. Secondly, both are attempts
to present the information impersonally. Thirdly, both being the components of
mass communication, they use mass communication media on several grounds.

2.1.3 Advertising Media Available in Nepal

Nepal has all media of advertising these days. The development of media of mass
communication dates back to the initial years of the Rana period. Prior to this,
pamphlets were used and people used to speak at loud voices to advertise in the
temporary market or the haat bazaar.

2.1.3.1 The Radio Nepal

The Radio Nepal was established on the 20th chaitra, 2007 B.S. (1st April 1951).
Initially, the transmission was done through a 250 watt transmitter. Over the years,
the Radio Nepal has strengthened its institutional capacity and diversified itself in
terms of program format, technical efficiency and nationwide coverage. Radio
Nepal now has programs on the short wave as well as on the medium wave
frequencies and most recent development is the launching of F.M. channel.

2.1.3.2 The Role of the Radio Broadcasting in Nepal

The radio broadcasting is the cheapest and quickest means of mass
communications in Nepal. In a mountainous country like Nepal, radio
broadcasting has proved a very effective medium in disseminating information
educating people and entertaining the message. It has been providing various
programs aimed at creating mass awareness. The people in hilly areas and many of

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the remote villages have no access to motor able roads, communication and
entertainment facilities. Illiteracy, being a common feature among the people, little
use in made of the newspaper, which has very limited and delayed circulation.
Therefore, the radio has been the most suitable means of disseminating
information and providing entertainment to the mass in Nepal (Ibid).

The transmission capacity of Radio Nepal is the short wave and the medium wave,
and recently they have launched Frequency Modulation (F.M) in many areas of
the country. The short wave transmission of Radio Nepal is estimated to reach
listeners throughout the kingdom. But, the medium wave transmission hovers from
80% to 90% of the population. There are five medium wave transmission stations
in Nepal.
I. The Eastern Development Region in Dharan
II. The central Development Region in Kathmandu
III. The Western Development Region in Pokhara
IV. The Mid Western Development Region in Surkhet
V. The Far Western Development Region in Dipayal.
From these transmissions, the radio broadcasts various regional languages as
Magar, Gurung, Newari, Rai, Bhojpuri, Maithali etc.

2.1.3.3 F.M. Radio

After the promulgation of the 1991 constitution of Nepal, there has been a steady
development in the media field and as a result various FM stations have been
launched and started its transmission. Radio Nepal launched the first F.M channel
in Nepal on the 30th Kartik, 2052 B.S. (16th November, 1995). The FM channel
airs programmes on the 100 MHz on the Frequency Modulation band through a 1
Kilowatt transmitter installed at Khumaltar, Lalitpur. There are other stations
through which Radio Nepal broadcasts through FM band in various parts of the
country like Illam 100 MHz, Birgunj 100 MHz, Hetauda 95 MHz, Bharatpur 103

14
MHz, Jomsom 100 MHz, Jumla 100 MHz, Dang 100 MHz, Budikhola 100 MHz,
Humla 100 MHz. A state of art sudio with stereo facilities has been established at
Singha Durbar with sufficient facilities to broadcast programs live. Similarly
private FM Radio Station like Kantipur, Radio city, Hist, Image, Sagarmatha etc in
Kathmandu and many FM Sations in various parts of the country like Radio
Birgunj, Kalika, Synergy, Palpa, Bheri, etc operate commercially and in
community as well. These all stations provide cheap and effective advertisement
in the local areas where they operate (Agrawal, 2002).

2.1.3.4 Printed Media

The first newspaper, in the modern sense is said to have appeared in the
Netherlands in the year 1529 A.D. Archer's weekly news first published in May
23rd 1622 is however regarded as the earliest newspaper. Nepal was late by 279
years in entering the field of newspaper. "History of Nepalese newspaper is
undoubtly a recent phenomenon. Unlike the United States, magazines entered the
field of journalism prior to the advent of newspaper in Nepal. The pioneer of
Nepalese journalism was Motiram Bhatta, a Nepali poet who edited and published
the first Nepali monthly "Gorkha –Bhatta, a Nepali poet who edited and Banaras
in India in the year 1886. It was Motiram Bhatta who collaborated with Krishna
Dev Pandey in setting up thePashupati press, the first print in Katmandu. A Nepali
monthly Sudha Sagar was printed and published in that press in 1898. The same
Pashupati press printed the first Gorkhapatra during the premiership of Dev
sumsher jung Bahadur Rana in 1901.

In 1662 A.D., the Gorkhapatra Corporation was set up to run the paper on
commercial basis with public participation. Gorkhapatra Corporation expanded its
field by publishing the first English newspaper, The Rising Nepal. Nowadays
Gorkhapatra is a daily newspaper and its circulation reaches to most of the
districts of the kingkom. Gorkhapatra Corporation these days publishes the Rising

15
Nepal and magazines like Yuvamanch, Muna, Madupark etc. There are many
other local, regional, national papers, magazines etc on daily, weekly, fortnightly,
monthly, quarterly, and half- yearly basis published in the country. Today modern
technologies have pierced into this print media giving more color, mixing, and life
to the advertisement.

2.1.3.5 Cinema
Film is perhaps the most revolutionary creation in the visual artistic expression.
Since its birth, like a hundred years ago, this ever-expanding medium has had a
profound influence in our societies, particularly in the field of communication.
Within decades of its appearance, it reaches a maturity that was no parallel in the
history of other forms of art. Today, particularly for developing countries, this
potential medium of mass communication has become a basic necessity without,
which an effective communication is impossible to put through (Agrawal, 2002).

This medium is considered as a best medium because looking at the 48% literacy
rate in Nepal , films represent an effective advertising medium in reaching the
message. The presentation of cinema starts in 2006-2007 B.S. Prior to this English
and Indian movies were shown in Singha Durbar for the dignitaries. After that,
films were also made in Nepali languages and the first film in Nepali was Raja
Harishchandra produced in Bombay, India. Now films are not only made in Nepali
in Nepal but Bhojpuri, Maithali, Newari, Gurung and other languages too. The
Nepali film industry has made a lot of progress in the last fifty years.

2.1.3.6 Nepal Television

Nepal Television (NTV) is perhaps one of the youngest television stations in Asia,
It started as a project in January 1985 under the Sixth Development plan (1980-
1985) in which a provision was made "to undertake feasibility study of the
establishment of television in the country and to begin TV transmission service at

16
selected places if found feasible from economic and technical standpoints."
Despite doubts felt by many, it began its experimental transmission for Katmandu
Valley in a very modest manner with VHF equipment and in the UHF band, in
those days there were only about 400 TV sets, the majority was also used for
receiving Doordarshan Signals. The thirst for TV programmes was growing.
When Nepal TV went on air with its thirty minutes transmission, the number to
TV sets increased dramatically. A 100 watt transmitter was then set up to cover
Katmandu valley during this experimental transmission, Regular transmission of
two hours commenced by the end of 1985. In February of 1986, it became a full
gledged corporation under their communication Act.

Thus mostly geared to Established as an electronic medium to enhance the

country's socio-economic development, Nepal Television currently covers 42% of
the country's population and 32% of the land area. Programmes are informed and
educate the general mass. With the extension of the network, transmission hours
have also increased 119 hours per week.

2.1.4 Consumer Psychology

Psychology is the description and explanation that is, the study of the causes,
conditions, and immediate consequences so far as these can be ascertained, of
states of consciousness such as sensations, desires, emotions, cognitions,
reasoning's, decision, volitions, and the like in human beings. Consumer is an
individual or organizational unit that uses or consumes a product (Stanton et al.,
2002).

Consumer Psychology is thoughts and feelings (transitory states of consciousness)

of consumers about product and services, knowledge gained by way of thoughts
and feelings, (procedural knowledge, conditional knowledge) about product and
services, and response to product and services (decisions) by the consumers.

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Consumer Psychology is a state of mind i.e. thoughts, feelings, and knowledge
about product and services of consumers. Moreover, Consumer's mental facts
cannot be properly studied apart from the physical environment of which they take
cognizance i.e., thoughts, feelings, and knowledge can only be understood within a
social-cultural context. Individuals think, feel, and know about products and
services in ways that promote behaviors that enhance self-preservation. The study
of Consumer's Psychology may be divided into three fundamental conscious
process and their conditions, i.e., the states of consciousness (thinking, feeling,
and knowing) in correlation with their probable neural conditions.
 Sensation – anatomically, the fibers which carry currents (affect).
 Cerebration or Intellection – the organs of central redirection of them
(cognition).
 Tendency to Action – the fibers, which carry them out (action).
In sum up, consumer psychology is attitude, beliefs, perception and credibility of
consumers about particular products or services accustomed by the physical
environment, socio-economic and cultural context of the consumers and response
to the particular products.

2.1.5 Consumer Buying Behavior or Decisions

Behavior is a positive or negative reaction made by individuals towards some
objects, things, or an idea that he/she sees, feel, experienced or confronted etc.
Behavior of an individual is guided by several factors. Any showed reaction is the
combination of several factors influences to react to this manner. Buying Behavior
is the decision processes and acts of people involved in buying and using products.

Need to understand
Why consumers make the purchases that they make?
What factors influence consumer purchases?

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The changing factors of our society
Consumer Buying Behavior refers to the buying behavior of the ultimate
consumer. A firm needs to analyze buying behavior for:

Buyer's reactions to a firms marketing strategy has a great impact on the firm's
success; The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze the what,
where, when and how consumers buy; Marketers can better predict how
consumers will respond to marketing strategies.

2.1.6 Advertising Theory

Advertising theory can be highlighted by the stages mentioned below:
1) Awareness
2) Consideration
3) Reaffirmation
4) Confirmation
5) Action
6) Reinforcement

Devising a theory of how advertising is effective within a consumer's mind is

difficult because consumers struggle with every decision they make. The process
in which consumers choose a brand and/or a product is extremely complicated.
Advertising messages must be tailored and relevant during each stage of a
consumer's buying or decision-making process. Advertising initiatives can be
viewed as effective on many different levels within this pattern. Advertising
messages are created in order to change the awareness, knowledge, and attitude of
consumers towards a specific brand offered. These changes take place all
throughout the buying a decision making pattern (McDonald, 1984).

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Stage 1- AWARENESS
The initial step within the buying or decision-making pattern is a basic awareness
of the product or service. The pure notion that a product is available to the
consumer, whether they need or can afford it at any specific moment within their
life, creates some form of awareness. This stage represents the initial introduction
a consumer has with a brand. The degree of awareness at this point is obsolete due
to the necessity of an advertising message's need to have some sort of presence
with a consumer's environment. Once a brand becomes part of a consumers'
environment, or better yet knowledge base, the possibility of purchase is increased
(McDonald, 1984).

The time a product stays in the awareness stage varies depending on the current
stage in life a person is in. The stage in life a person is in is defined by their
financial status and current needs. The awareness stage could lead directly into the
follow consideration stage or remain in that stage inevitably (McDonald, 1984).

The chance of remaining in the awareness stage does not mean that the advertising
initiatives were ineffective or wasteful. Many times consumers influence each
other, and a brand in one consumer's awareness stage could lead to the
introduction of the brand to another consumer. One of the most influential sources
of information regarding products comes from the consumers themselves, passing
the word along through daily conversation. However, the initial introduction must
be made through advertising in order to have the possibility of consumers
influencing each other (McDonald, 1984).

Stage 2- CONSIDERATION
Once an advertising message has moved past the awareness stage, the consumer
begins to consider the message. This stage represents the point in which a personal
connection must begin to be made. Consideration of whether this is a product that

20
will meet a need of the consumer is the most crucial point within the buying and
decision making process. This is the stage where the consumer is weighing the
facts. These facts are from the advertising message itself and from their current
environment not related to the message, including other ad messages (Cunawalla
and K.C., 1997).

The main point to consider regarding this stage is that it is the stage where
advertisers want to establish a connection with the consumer. Research on the
target market and profiling on the target help to ensure a message to resonate with
the consumer in a positive way. The connection would then push them to later
purchase or develop an affinity for a certain brand (Cunawalla & K.C., 1997).

Stage 3- REAFFIRMATION
Once the consumer has had time to evaluate the message and the product or
service, a connection must be made in order to move onto the next stage. The next
stage involves reaffirming the consumer that the connection does exist. This stage
is where they fully understand the connection, which has been made, and see a
place in their lives for the advertised product or brand. This stage is similar to the
consideration stage but involves an additional awareness of competitors and
evaluation of preference. This stage can lead back to the consideration phase if not
enough positive associations are made with the product or brand. These positive
associations can come from influential friends and relatives and additional
advertising messages in varying forms of media (McDonald, 1984).

Stage 4- CONFIRMATION
After the consumer has been reaffirmed by additional advertising messages and
influence from other consumers, the connection and relevance in the consumer's
life exists. The consumer then enters the confirmation stage. This stage is where
the brand and product are viewed in a positive light and there is increased chance

21
of recommendation to other consumers or action. The confirmation stage does not
always lead to action. Consumers can stay in the confirmation stage for a long
time before any initiatives to buy actually take place. This mostly involves the
level of involvement the consumer has with the product or brand. Higher cost
items might have to remain in the confirmation stage until available funds are
available to the consumer. In this case, the consumer could go back into the
consideration and reaffirmation stages. More likely, confirmation will take place
again at a later time where the product or brand is more appropriate within the
consumer's time in life (Cunawalla & K.C., 1997).

Stage 5- ACTION
After a confirmation of a brand or product is made, hopefully an action will take
place. This stage is where the consumer has found a need and a connection, and
believes it is the right time for them to purchase the product. Within this stage,
reaffirmation and consideration come back into play both prior to the purchase and
after. There is a constant need to convince oneself that this decision is the correct
one. Advertising messages from competitors are still playing a large role in the
Consumers' decision making. This consideration and reaffirmation occurs as the
consumer is bombarded with competitor messages and the messages of the brand
or product now preferred. However, it is important that once a consumer decides
to initially purchase a product, they go back and forth between the reaffirmation
stage and confirmation stage until the actual purchase takes place. Once the
purchase takes place, the consumer must have reinforcement in order to defer
dissonance with the product or brand (Cunawalla ,& K.C., 1997).

Stage 6- REINFORCEMENT
The reinforcement stage involves continuing advertising initiatives to maintain the
positive association the consumer initially had. This stage is where the consumer
decides if the product actually did fulfill the need to be met as promised. This

22
reinforcement comes from additional advertising initiatives and the actual
experience with the product or brand after purchase. It the consumer is satisfied
with the product or brand, a continuation of use will be established. Advertising
initiatives are not developed to have the targeted consumer purchase or try the
brand once; these messages are designed to become part of the consumer's lifestyle
and induce repeat usage and purchasing behavior (McDonald, 1984).

2.1.7 Factors Influencing Consumer Buying Behavior

A consumer’s buying behavior is influenced by cultural, social, personal and
psychological factors. Research into all these factors can provide clues to reach
and serve consumers more effectively.

Cultural Factors
Culture, subculture and social class are particularly important in buying behavior.

i. Culture: Culture is the fundamental determinant of a person’s want and

behavior. The growing child acquires a set of values, perceptions, preferences and
behavior through his or her family and other key institutions. Each culture coins of
smaller subcultures that provide more specific identification and socialization
for their members (Cateora & Graham, 2001).

ii. Subculture: Subcultures include nationalities, religions, racial groups and

geographic regions. When subcultures grow large and affluent enough, companies
often design specialized marketing programs to serve them.

iii. Social class: Social classes reflect not only income, but other indicators
such as occupation, education and area of residence. There members share similar
values interests and behavior. Social classes differ in dress, speech patterns,
recreational preferences and many other characteristics. Social classes show

23
distinct product and brand preference in many areas, including clothing, home
furnishings, leisure activities and automobiles.

Social Factors
In addition to cultural factors, a consumer’s behavior is influenced by such social
factors as reference groups, family and social roles and statuses.

i. Reference groups: A person’s reference groups consist of all the groups that
have a direct or indirect influence on the person’s attitudes or behavior. Groups
having a direct influence on a person are called membership groups. Some
membership groups are primary groups, such as family, friends, neighbors and co-
workers with whom the person interacts continuously and informally. People
also belong to secondary groups, such as religious, professional and trade
union groups, which tend to be more formal and require less continuous
interaction.

ii. Family: The family is the most important consumer-buying organization in

society and family members constitute the most influence primary reference
group. The family has been researched extensively. There are two type of family
members in the buyer’ life. The family of orientation consists of parents and
siblings. From parents a personal ambition, self-worth and love. Even if the
buyer no longer interacts very much with his or her parents, their influence on the
buyer’s behavior can be significant (Cateora & Graham, (2001).

iii. Role and Statuses: A person participates in many groups – family,

clubs, and organizations. The person’s position in each group can be defined in
terms of role and status. A role consists of the activities a person is expected to
perform. Each role carries a status.

24
Personal Factors
A buyer’s decisions are also influenced by personal characteristics. These include
the buyer’s age and stage in the life cycle, occupation, economic
circumstances, lifestyle and personality and self-concept.

i. Age and stage in the life cycle: People buy different goods and services
over a lifetime. They eat baby food in the early years, most foods in the
growing and mature years and special diets in the later years. Taste in
clothes, furniture and recreation is also age related. Marketers often choose life-
cycle groups their target markets.

ii. Occupation: Occupation also influences consumption patterns. A blue-collar

worker will buy work clothes, work shoes and lunch boxes. A company president
will buy expensive suits, air travel and country club membership. Marketers try to
identify the occupational groups that have above-average interest in their
production and service.

iii. Economic circumstances: product choice is greatly affected by economic

circumstances such as spendable income, saving and assets, debts, borrowing
power and attitudes towards sending and saving. Marketers of income
sensitive goods continuously monitor trends in personal income, saving and
interest rates.

iv. Lifestyle: People from the same subculture, social class and occupation may
lead quite different life style. A lifestyle is a person’s pattern of living in the world
as expressed in activities, interest and opinions. Lifestyle portrays the “whole
person” interacting with his or her environment. Marketers search for relationship
between their products and lifestyle groups (Koirala, 2000).

25
v. Personality and self-concept: Each person has personality characteristics
that influence his or her buying behavior. By personality, we mean a set of
distinguishing human psychological traits that lead to relatively consistent
and enduring responses to environmental stimuli. Personality is often described
in terms of such traits as self-confidence, dominance, autonomy, deference,
sociability, defensiveness and adaptability. Personality can be a useful variable in
analysis consumer brand choices. The idea is the brands also have personalities
and that consumers are likely to choose brands whose personalities match their
own.

Psychological Factors
A person’s buying choices are influenced by four major psychological
factors motivation, perception, learning and belief and attitudes.

i. Motivation: A person has many needs at any given time. Some needs arise from
physiological states of tension such as hunger, thirst or discomfort. Other
needs arise from psychological states of tension such as the need of recognition,
esteem or belonging. A need becomes a motive when it is around to a sufficient
level of intensity. A motive is a need that is sufficiently pressing to drive the
person to act.

ii. Perception: A motivated person is ready to act. How the motivated person
actually acts influenced by his or her perception of the situation. Perception is the
process by which individual selects, organizes and interprets information inputs to
create a meaningful picture the world. Perceptions can vary widely among
individuals exposed to the same ability.

iii. Learning: When people act, they lean. Learning involves changes in an
individual’s behavior arising from experience. Most human behavior is

26
learned. Learning theorists believe that learning is produced through the interplay
of drives, stimuli, cues, responses and reinforcement. The learning theory
gives idea to the marketers that they can build up demand for a product by
associating it with strong drives, using motivating cues and providing positive
reinforcement.

iv. Beliefs and Attitudes: Through doing and learning, people acquire belief
and attitudes. There in turn influence buying behavior. A belief is a descriptive
thought that a person holds about something. People’s belief about a product
or brand influences their buying decisions. Marketers are interested in the
beliefs people carry in their heads about their products and brands. Brand beliefs
exist in consumers’ memory. Attitudes lead people to behave in a consistent way
toward similar objects. Consumer’s attitude towards a firm and products strongly
influence the success or failure of that organization’s marketing strategy.
When consumers have strong negative attitudes about one or more aspects of a
firm’s marketing practices, they not only stop using the product but also many stop
their relatives and friends from using it. Since attitude can play such an
important part in determining consumer behavior, marketer should measure
consumer attitudes towards such dimension as prices, package designs, brand
name, advertisement, etc (Kotler, 1994).

2.1.8 Consumer Decision Process

One of the important and traditional areas of study in consumer behavior has been
the consumer decision-making process leading to product/service purchase.
The study of consumer decision-making involves the analysis of how people
choose between two or more alternative acquisitions and of the processes that take
place before and after the choice (Mowen, 1990).

27
At the most complex level, consumer decision making process consists of a series
of five stages shown in figure 2.1

Figure 2.1
A Generic Flowchart of the Consumer Decision Process
Problem Recognition

Search

Alternative Evaluation

Choice

Post – acquisition Process

(Mowen, 1990)

I. Problem Recognition
Problem recognition occurs when a discrepancy develops between an actual and a
desired state of being. In essence, problem recognition occurs when a need state is
felt. Typically, researchers seek to identify consumer problem by analyzing
the factors that act to widen the gap between the actual state and the
desired state. Thus, if the satisfaction with the actual state decreases, or if the
level of the desired state increases, a problem may be recognized that propels
consumer to action.

II. Consumer Search Behavior

After a consumer identifies a problem of sufficient magnitude to propel him or her
to action, a search process is begun to acquire information about products

28
or services that may eliminate the problem. The investigation of the consumer
search process is highly important to marketers. In particular, it influences a
company’s promotion and distribution strategies. Researchers have found that
two types of consumer search process exist-internal search and external
search. Internal search involves that consumer attempting to retrieve from
long term memory information in products or service that will help to solve a
problem. In contrast, external search involves the acquisition of information from
outside sources, such as friends, advertisements, packaging, sales personnel, and
so forth.

III. Alternative Evaluation

In the evaluation stage of the action process, the consumer compares the
brand identified as potentially capable of solving the problem that initiated the
decision process. When the brands are compared, the consumer may from belief,
attitudes and intentions about the alternatives under consideration. Thus,
alternative evaluation and the development of beliefs, attitudes and intentions
are closely related. The result of alternative evaluation of right-involvement goods
is generally lengthy comparative to low-involvement goods.

IV. Consumer Choice Process

After engaging in an evaluation of the alternatives, the consumer’s next step in the
decision making process is to make a choice among alternatives. Consumers make
a variety of different types of choices. They can choose among alternative brands
or services, and they can make choices among stores. How consumers go
about making choices is strongly influenced by the types of decision process
in which they are engaged. Good evidence exists that the choice process differs if
consumers use a high-involvement approach as compared to a low-
involvement approach. When consumers are highly involved in the purchase, they
will tend to engage in a lengthy decision-making process. In such a high-

29
involvement purchase, consumers are described as moving through each of the
five stages of the action process in a sequential manner. In contrast, when
consumers perceive little personal importance in the purchase they will move
through a limited decision process. The search stage will be minimized. In
addition, the alternative evaluation stage may be largely skipped. Family, in
limited decision making the choice process will be much simple than in high
involvement conditions.

V. Post-Acquisition Process
The post-acquisition phase of the consumer buying process consists of four stages
acquisition consumption/usage, the formation of post-acquisition purchase
satisfaction or dissatisfaction, consumer complaint behavior and product
disposition. The post-acquisition phase has a major impact on whether consumers
will repurchase the product or service. In addition, expectations of how will
be treated in the post-acquisition phase may influence actual buying decision
(Mowen, 1990).

2.2 Review of Related Studies

2.2.1 Review of Thesis
Malla, (2012) had conducted a study on “A Study on Sales Promotion of
Pharmaceutical Product in Nepal”, has the main objective to study the
market position of Nepalese Pharmaceutical industries, Profitability of
Pharmaceutical production and determining the problem of Nepal Pharma Market.
There are 125 respondents interviewed during the process of data collection.
Simple statistical tools such as percentage, ratio along with diagrams have been
used in the process of analysis. It is found that only 32% of total Pharma
market share of Nepal is covered by local production. Remaining 68% by
Indian and other countries. The promotional tools adopted by most of
Pharmaceutical companies are announcing 36schemes, high bonuses to retailer
30
offering gifts to doctors. And these are the major factor that leads the Nepalese
Pharma Market to unhealthy and unethical promotional practices. An excessive
number of similar brands lead to problem of substitution, i.e., chemist substituting
a prescribed brand in preference of another that might be more profitable to them.

Gurung, (2013) had conducted a study on “Impact of Television Advertising

of Cosmetic Products on Consumer’s Behavior: With Reference to Sunsilk
Shampoo”, has the main objective to measure the impact of television advertising
on consumer behavior. This study is based mainly on primary data collected from
respondents of Kathmandu valley. Only 50 respondents are taken for this study as
a sample. Simple statistical tools such as percentage, ratio along with diagrams
have been used in the process of analysis. Form the comparison of male and
female respondents, the percentage of women respondents for watching
television seems to be higher than male respondents. Form the analysis it is
found that most of the consumers give the priority or preference to the frequently
advertised product than not advertised product.

Adhikari, (2014) had conducted a study on “The Effectiveness of Promotional

Strategy of Mobile Service in Society: with Reference to Ncell”. The study is
based mainly on primary data filed by respondents of Kathmandu valley. There
are 130 respondents interviewed during the process of data collection. Simple
statistical tools such as percentage, ratio along with diagrams have been used in
the process of analysis. It can be concluded that the maximum respondents’ age
fall amidst 20-30 while having consumer survey. Also the numbers of male are
higher than female participant. Respondents buying decision regarding to mobile
service highly affected by Good Network Coverage and Service Features. It is also
found that respondents have positive response towards the advertising of
Ncell. Most of the respondents have noticed all of the ad campaign, but
one hour talk is highly appreciated among all of the ad campaign.

31
Baral, (2015) had conducted a study on “Communication Effect of Advertising
and Brand Preferences of Instant Noodles”. The study has concluded that
advertising is considered as the primary source of information. 160 respondents
are taken for this study as a sample. The samples under the study are collected on
random basis. Simple statistical tools such as percentage, ratio along with
diagrams have been used in the process of analysis. It is found that there is a high
degree of association between brand preference and advertisement qualities. Then
no difference between Yum Yum and Rara advertisements in terms of
attractiveness and Radio, TV and Newspapers are the major media for instant
noodles.

Shrestha, (2016) had conducted a study on “The Role of Advertising in Brand

Choice and Product Positioning”. There are approximately 100 respondents
interviewed during the process of data collection. The study is based on primary
data. Simple statistical tools such as percentage, ratio along with diagrams have
been used in the process of analysis. It is found that advertising is the main source
of information and key tool to motivate and persuade the consumers. Then,
dissemination of product features for new products is very high through
advertising. Believability is found to be satisfactory and the major reason for
switching brands is taste.

Pandit, (2017) had conducted a study on “Radio Advertising and Its Impact on
Purchasing Acts in Consumer Goods”, has the main objective to measure the
impact of radio advertising on purchasing acts in consumer goods. The study has
concluded that advertising is considered as the primary source of information. 150
respondents are taken for this study as a sample. The samples under the study are
collected on random basis. Simple statistical tools such as percentage, ratio along
with diagrams have been used in the process of analysis. It is found that the radio
is the most effective mode of advertising in Nepalese context. This mode
32
disseminates the information not only to urban population but also to the rural
population. The study also ascertains that in comparison to the television
advertising, the radio advertising is cheap and draws more attention of the
consumers toward the product. About 76% of the total respondents have favored
for this issue. Moreover, not only the consumers are facilitated by the
advertisement, the company has also been ultimately benefited by the
advertisement. About, 68% of the total personnel of the selected companies have
stated that the radio advertisement aid to increase the sales in greater extent.

2.2.2 Review of Journals and Articles

Bishnoi & Sharma, (2012) had written an article on “The Impact of TV
Advertising on Buying Behavior: A Comparative Study of Urban and Rural
Teenagers”, suggests that rural teenagers like television advertising more than
their urban counterparts. TV advertising has enhanced their involvement in
product selection and purchase. They prefer to buy and experiment with the new
products. Rural teenagers collectively decide with their family members, products
to be purchased due to exposure to TV advertisements while it is not so with their
urban counterparts. The urban teenagers do not agree to buy the advertised
products if they do not require them. They like the advertisements of the products
they are already using and believe that the quality of the product is as good as
expected from TV advertisements. It has also been concluded that there is a
considerable variation in the perception of both rural and urban teenagers on
the issue that demand for product purchase is influenced by TV
advertisements. Further, the study also revealed that the buying behaviour of
male teenagers is more influenced by television advertisements than their
female counterparts.

Sharma, Singh & Agrawal, (2013) had written an article on “The Impact of
T.V. Advertisements on Buying Behavior of Indian Adults: An Empirical
33
Study”, attempt to understand the impact of TV advertisements on the buying
behavior of adult consumers on the basis of certain demographic factors.
The efforts have also been made to provide workable suggestions to the
advertisers and the marketers in this regard. The study reveals that adults strongly
believe that the TV advertisements have considerably influenced their buying
process. However, they do not favor the idea of buying products just on the
basis of TV advertised products. The research connotes that rural respondents are
found more influenced by the advertisements in their product purchase
decisions in comparison to the urbanites. An interesting finding has been
that most of the respondents are fond of watching TV advertisements, females
being dominant.

The liking for the TV advertisements is on the lower side among respondents of
higher education level. Another finding of the study is that the adults irrespective
of their gender and area of residence strongly consider that TV
advertisements have impact on their mind and the exposure to TV advertisements
have not only enhanced their involvement in purchasing but has resulted in
increasing their frequency of purchase.

Arcan, Bruening & Story, (2014) had written an article on “Television (TV)
and TV Advertisement Influences on Children’s Eating Behavior”, stated that
children and adolescents spend a considerable amount of time watching television.
As a result, youth are exposed to a large number of food and beverage
advertisements each day. Among ethnic minority groups, this exposure is even
higher. Television viewing is associated with unhealthy food consumption among
children. There is sufficient evidence that TV advertising influences the food
preferences, purchase requests and diets of children under the age of 12
years. Experimental studies supported the causal relationship of food advertising
on children’s eating behaviors, demonstrating that immediately following the

34
food commercials young children were more likely to increase their caloric
intake and snack foods. Although research is limited in the area of parental
communication about food advertising, it has been shown that parental
communication about food advertising and setting restrictions on advertising
exposure protects against energy-dense food consumption among young children.

Ismail & Kaleem, (2015) had written an article on “Television Viewing and
Consumer Behavior: The Effect of Personality Traits and Demographic Variables
on Children’s Consumer Socialization”, examined the influence of television on
children’s consumer socialization by looking at the influence of demographic
variables and personality traits on television viewing and purchase behavior. Of
the two demographic variables, the most influential in explaining differences in
socialization was the child’s family income. Gender is less influential in
explaining the socialization pattern. But gender should not be discounted in
future research into children’s consumer socialization. Gender is an important
variable in explaining the children’s consumer socialization as it has a particular
influence on the type of program preferred by children. Not all of the personality
variables had significant effects on children’s consumer socialization. Overall, of
the six variables that did show a relationship with consumer socialization,
The studious–playful personality trait showed significant findings in association
with the intention to own a product seen on television Other significant personality
traits were rough–gentle, brave–cowardly, silent–chatty, and competitive–
tolerant. These traits were found to have significant effects with some of the
socialization variables. Although the personality variables alone–friendly, happy–
pensive and self-reliant-dependent were less influential they should still be
considered by marketers.

Children’s personality traits are an important consideration when devising a

marketing strategy. Marketers should take these characteristics into account

35
when developing their advertising and research how children with different
personalities will perceive their ads. Future research into children’s consumer
socialization should consider a larger sample and perhaps include different
countries. Further demographic variables could include nationality and parental
marital status to identify other influences on children’s consumer socialization.
Another way to increase the value of the survey would be to include details of
parents’ restrictions on television viewing; the level and effectiveness of such
restrictions are now a significant consideration for television advertisers.

Tiwari, (2017) had published an article on “Effect of Advertising on Buying

Behavior of OTC Medicines in Nepalese Context” and stated that the
advertisement of OTC medicines has positive effect on the awareness level of the
people regarding OTC medicines but there wasn’t a positive correlation of
advertisement to change in the buying behavior of OTC medicines. In Nepalese
context, very limited numbers of advertisement of OTC medicines can be seen on
the online and print media. On the one hand, very limited people have easy access
of television or newspaper/magazines. It may be the reason advertisements are less
effective. It is found that only 32% respondents purchased OTC medicine after
viewing the advertisement whereas, only 14.8% reported that were influenced by
the advertisement of OTC medicines. Very few people trusted in the advertisement
done through television or newspaper. It was observed that majority of people
trusted in the recommendation of medical hall than other media.

2.3 Research Gap

It refers to the study gap related to the previous studies. A few research studies
have been conducted by the different students, experts and researcher about effect
of electronic advertising. All of the above researchers are confined to the
general promotion mix, i.e. either sales promotion or advertising. Nevertheless, a
company practices all sorts of promotional mixes in most of the cases.
36
Another thing is that they found out limited findings and they could not be able to
effect of advertising on Coca Cola. Among various promotional strategies, the
advertisements can have significant impact on the consumers’ buying behavior, as
consumers get the familiarity with the product by seeing and getting much
information agile, which is missing in the reviewed materials. Identifying this
gap, the present study presents the effect of advertisement to stimulate
consumers’ buying behavior related to the advertised Coca Cola.

37
 CHAPTER - III
RESEARCH METHODOLOGY

Research methodology is concerned with various methods and techniques which

are used in the process of research studies. It includes wide range of research
methods including the quantitative techniques for the purpose of data collection,
presentation analysis and interpretations.

The resent studies conducted to analyze the objectives and research problems
related to the application of electronic media. The research methodology has been
followed to attend the basic objective and the solution of the research problems.

3.1 Research Design

The research design this study is descriptive as well as analytical. This is the study
of practical investigation about the understanding and uses of electronic media in
advertisement. The formidable problem that the following in the task of defining
the research is the preparation of design of the research project, popularly known
as research design. The questionnaire has been prepared in such a way that will
help to find the different types of advertisement which are preferred by people, the
peoples reaction about advertisement which are preferred by people, the peoples
reaction about advertisement, buying habits of advertised products, cause of
product buying, consumer's favorite advertising media, reaction about repetition of
advertisement, categories of advertising by people, impact of media on human
mind, different information provided by advertisement and its comparative
benefits, ability to recall commercial and other benefit of advertisement besides
product awareness. The entire questionnaires are objective, which has been
prepared to collect the scope of improving advertisement and need to adopt the
changes as per the public opinion. The data collection work will be conducted in

38
Kathmandu Valley, so collected information may differ from most of other parts
of the country. The respondents themselves with the help of the researcher fill in
most of the questionnaires. The data collected are strictly their opinion and their
own habits and answers.

3.2 Nature and Sources of Data

This study is based on primary data. A primary data collection is questionnaire. A
set of questionnaire has been prepared and filled by different level of people
through the means of interviews. This questionnaire is prepared to support all the
objectives of this research and researcher herself was presented to take interview
with the people. While collecting primary data and information, The data were
collected in four months period from September 2018 to December 2018
questionnaire method and interview method.

3.3 Population and Sampling

The study identified the Kathmandu valley buyers as its population.

3.4 Respondents Profile

The collection of data is done on the basis of different factors found in most of the
samples of the population. The total samples are classified on the basis of different
attributes and consumer habits.

The sample is further classified on the basis of gender. The situation of gender
wise respondents profile is presented in table 3.1.

39
 Table -3.1
Respondents by Gender
Description No. of Respondents Percent (%)
Male 84 56
Female 66 44
Total 100 100

The table 3.1 shows that the respondents by gender. There are altogether seventy
five male and seventy five female in each respondents. It can be said that 56- 44%
is represented by male and female respectively.

Likewise, the sample is also classified on the basis of education attained or literacy
level. The data collected from covering the various educational backgrounds is
presented in table -3.2.

Table-3.2
Respondents by Educational
Description No. of Respondents Percent (%)
Uneducated 30 20
S.L.C. and Below 60 40
Above Bachelor 60 40
Total 150 100

The table 3.2 reveals that the respondents by educational wise. There are three
different categories such as uneducated, SLC and below and above bachelor which
are represented 20 percent 40 percent and 40 percent respectively. Likewise, the
situation of age –wise sample collection from various age groups are presented in
table 3.3.

40
 Table-3.3
Respondents by Age-wise
Description No. of Respondents Percent (%)
Below 16-25 60 40
26-45 60 40
Above 45 30 20
Total 150 100

The table 3.3 explains that the respondents by age wise. The sample size of total
people is divided into three groups like below 16-25, 26-45 and above 45 which
are represented 40 percent 40 percent and 20 percent respectively but there is no
upper limit in the last group i.e. C.

3.5 Method of Analysis

The consistency of the consumer provided by the respondents is checked and
tabulated according to age, education and gender. Different sets of tables have
been prepared for every important questionnaire. Simple listing method is used for
the tabulation of data and different responses made by them are presented on
percentage basis. In order to accomplish the objective of the study, various,
graphs, diagrams including pie chart have been applied for the purpose of analysis.
The result of analysis has been properly tabulated, compared, analyzed and
interpreted as far as practicable.

• Percentage
A percentage is defined as a number represented as a fraction of 100. Percentages
are used to express numbers between zero and one. It is used to compare things
and also used in ratios. It is denoted by the symbol %.
Percentage = (Value / Total Value) x 100

41
 CHAPTER-IV
PRESENTATION AND ANALYSIS OF DATA

The advertising business in Nepal is flourishing day by day, which passes through
appropriate media like television, radio, cinema and internet. Advertising is not
ordinary communication but marketing communication. Communication is
unimaginable these days. Advertising relays the message of different product in
the easy touch of common people. This analysis covers Kathmandu Valley and
glances upon the behavior of different consumers.

The sample populations of study were 150 respondents belonging to different age
group, educational level and gender. The most important task of any researcher is
to present the raw data into an understandable form and analyze in the purposive
way to obtain the research objectives

4.1 Presentation and Analysis of Data

It is a pictorial presentation of the data to understand the further analysis at a
glance. It is presented here to gain idea on the factors affecting buying behavior,
consumers' attitude and buying pattern. It also helps to understand the general
attitude towards advertising. It can't prove or disprove the fact by the data
presented in graphs, but it helps to get insight into the nature and direction of the
data. The prime objective of this presentation is to provide the background to
understand the next part of the analysis easily, to present the factors considered
under study and to give an insight into the nature of data studies.

The researcher have tried to present and analyze consumers' responses relating to
media used by respondents, persons who buy for them, the types of products they
used to buy, influencer to them for buying, sources of information used by them

42
for buying, the type and reasons to get help for buying, and so on. These responses
have been shown differently in the respective figures in the running materials. The
researcher took an opinion took an opinion survey vis-à-vis the information media
used by the respondents. The views of people have been analyzed as follows;

4.1.1 Preference of Electronic Advertising according to Gender

The situation of preference of consumer on advertisement according to the gender
is presented in table 4.1.

Table: 4.1
Preference of Electronic Advertising according to Gender
Description No. of Musical Percent Good Percent Simple Percent All Percent
Respondents (%) wording (%) (%) types (%)
Male 84 42 50.00 28 33.33 8 9.52 6 7.14
Female 66 28 42.42 18 27.27 4 6.06 16 24.24
Total 150 70 46.67 46 30.67 12 8.00 22 14.67
Note ; Researcher’s Survey, 2018
The table 4.1 reveals that the preference of advertisement according to gender. Out
of male, 50 percent of respondent are found to like the musical advertisements,
33.33 percent of respondent preferred good wording, 9.52 percent of respondent
preferred simple advertisement and 7.14 percent respondent liked all type of
advertisements.

Regarding female respondents, 42.4 percent of respondents like the musical

advertisements, 27.27 percent of respondent like the good wording, 6.06 percent
of respondents like simple and 24.24 percent of respondents like all type of
advertisements.

43
 Figure: 4.1
Preference of Electronic Advertising according to Gender

45
40
35
No. of Respondents

30 Musical
25
Good word
20
Simple
15
10 All types
5
0
Male Female
Gender Wise

The figure 4.1, it is clear that the male consumers seem to give more priority to
musical advertisement than female and male consumers also the more good
wording advertisement than the female. Altogether, they preferred the musical
advertisements the good wording advertisements.

4.1.2 Age-wise consumers' preference on Advertisement

The table 4.1 shows the age level and their advertisement preference. The sample
size of total people is divided three groups of respondents and detail situation has
been presented in table 4.2.

44
 Table: 4.2
Age-wise consumers’ preference on advertisement
Description No. of Musical Percent Good Percent Simple Percent All Percent
Respondents (%) wording (%) (%) Type (%)

Below 16- 60 39 65.00 12 20.00 3 5.00 6 10.00

25
26-45 60 29 48.33 22 36.67 2 3.33 7 11.67
Above 45 30 11 36.67 17 56.67 0 0.00 2 6.67
Total 150 79 52.67 51 34.00 5 3.33 15 10.00
Note: Researcher’s Survey, 2018

The table 4.2 depicts that the 65 percent of respondents below 16-25 years
preferred musical advertisement mostly, 20 percent of respondents are found to
prefer good wording, 5 percent of respondents prefer simple and remaining 10
percent of respondents prefer all type of advertisement. The age group 26-45,
48.33 percent of those respondents like musical advertisement, 36.67 percent of
those respondents like advertisement with good wording, 3.33 percent of
respondents like simple, whereas 11.67 percent of respondents like all type of
advertisement.

The reaction of the respondents those fall in age group above 45 is slightly
different, 56.67 percent of respondents love advertisement with good wording,
36.67 percent of people prefers musical advertisement, 6.67 percent of people like
all type of advertisements but there is no respondents prefer simple advertisement.

45
 Figure: 4.2
Age-wise consumers’ preference on advertisement

40
35
No.; of Respondents

30
25 Musical
20 Good wording
15 Simple
10 All Type
5
0
Below 16-25 26-45 Above 45
Age Wise

The figure 4.2 revels that the age wise preference on advertisement, the majority
of respondent prefer musical advertisement except age group above 45. Then, the
reaction of the people that fall in every age group is good wording. Simple
preferred by the respondents in third position but the least advertising preferred by
the respondents is all type of advertising.

4.1.3 Literacy wise consumers’ preference on advertisement

The situation of consumer preferences on the basis of literacy level of consumer is
presented in the table 4.3.
Table: 4.3
Literacy wise consumers’ preference on advertisement
Description No. of Musical Percent Good Percent Simple Percent All Percent
Respondents (%) wording (%) (%) types (%)
Uneducated 30 19 63.33 6 20.00 3 10.00 2 6.67
SLC and 60 37 61.67 14 23.33 5 8.33 4 6.67
Below
Above 60 29 48.33 25 41.67 0 0.00 6 10.00
Bachelor
Total 150 85 56.67 45 30.00 8 5.33 12 8.00
Note: Researcher’s Survey, 2018

46
The table 4.3 shows that lower educated respondent's people preferred to musical
advertisements. Regarding musical advertisement, 63.33 percent of uneducated
people prefer musical advertisement, 61.67 percent of SLC and below preferred it
whereas, 48.33 percent prefer this advertisement. Likewise, 20. percent of
uneducated people prefer good wording advertisement, 23.33 percent of
respondents love it and 41.67 percent of respondents like this advertisement.
Considering simple advertisement, 10 percent respondents preferred by
uneducated, 8.33 percent preferred by SLC and below and there is no above
bachelor respondents like this advertisement. Similarly, talking about all types
advertisement, 6.67 percent uneducated respondents and SLC and whereas, 10
percent of bachelor respondents prefer. It is presented in multiple bar figure 4.3.

Figure: 4.3
Literacy-wise consumer preference on advertisement

40
35
No. of Respondents

30
25 Musical
20 Good wording
15 Simple
10 All types
5
0
Uneducated SLC and Below Graduate
Education Wise

The figure 4.3 reveals that the most of the uneducated respondents, SLC and
below and above bachelor preferred musical advertisement. However, above
bachelor people also focus on advertisement having good word.

47
4.1.4 Gender-wise reaction to the advertisement
The situation of gender-wise reaction to the advertisement is presented in the table
4.4.
Table: 4.4
Gender-wise reaction to the advertisement
Description No. of Try to Percent Curious Percent Just Percent
Respondents know (%) (%) watching (%)

Male 84 45 53.57 9 10.71 30 35.71

Female 66 31 46.97 2 3.03 33 50.00
Total 150 76 50.67 11 7.33 63 42.00
Note: Researcher’s Survey, 2018
The table 4.4 shows that the gender wise reaction of advertisement. Out of the
total eighty four male populations, almost 53.57 percent of respondents view that
they are particular only the meaning, 10.71 percent are curious to advertisement
and 35.71 percent found to be mere audience. To see the female population 46.97
percent respondents are found to be concerned of the meaning of advertisement.
Only 3.03 percent are curious about advertisement and only 32 percent are found
to be mere audience.
Figure: 4.4
Gender wise reaction to advertisement

45
40
No. of Respondents

35
30
25 Try to know
20 Curious
15 Just watching
10
5
0
Male Female
Gender Wise

48
The figure 4.4 reveals that the female population seems to be more concerned with
the meaning of advertisement whereas majority of male population is found to be
interested to the advertisement.

4.1.5 Age-Wise consumers' reaction to the advertisements

The people of different age groups react to the advertisement differently like some
of them tries to know what advertisement meant. Some of them may be curious
about advertisement, whereas, some just watches or hear advertisement. The
situation of consumer reaction according to the age group is presented in the table
4.5.
Table: 4.5
Age wise consumers’ reaction to the advertisements
Description No. of Try to Percent Curious Percent Just hear Percent
Respondents know (%) (%) or watch (%)

Below 16-25 60 24 40.00 9 15.00 27 45.00

26-45 60 30 50.00 3 5.00 27 45.00
Above 45 30 9 30.00 3 10.00 18 60.00
Total 150 63 42.00 15 10.00 72 48.00
Note: Researcher’s Survey, 2018

The table 4.5 shows that the total sample population belonging to different age
group does not have the same opinion about advertisement. The results regarding
the consumers’ opinion on advertisement indicate that 40 percent of respondent
belonging to the first age group (i.e. below 16-25) want just to know the literal
meaning of advertisement, 15 percent respondent are really curious about
advertisement whereas, 45 percent of respondent are passive advertisement
audience.

Likewise, among the respondent belonging to second age group (i.e. 26-45), 50
percent respondent are conscious only with the meaning of advertisement, 5
49
percent are highly inquisitive to the advertisement while 45 percent are mere
audience. In the last group i.e. above 45, 30 percent are conscious with the
meaning of advertisement and 10 percent are inquisitive to advertisement where
as 60 percent of respondents are found to be mere audience.

Thus from the above data it is clear that almost 10 percent respondent are only
conscious about what advertisement means and only 42 percent are highly
interested about advertisement while 48 percent respondent are found to be dull
audience.

Figure: 4.5
Age-wise reaction to the advertisement

30

25
No. of Respondents

20
Try to know
15
Curious
10
Just hear or watch
5

0
Below 16-25 26-45 Above 45
Age Wise

The figure 4.5 depicts that the age wise reaction to the advertisement. Considering
the reaction of consumer on advertisement majority of people 26-45 and above 45
are found to be passive audience. But below 16-25 age groups are highly
interested about advertisement. The least respondent are only conscious about
what advertisement.

50
4.1.6 Education –wise reaction to the electronic advertisement
The consumers’ reaction to the advertisement according to their educational level
is presented in the table 4.6.

Table: 4.6
Education –wise reaction to the electronic advertisement
Description No. of Try Percent Curious Percent Just Percent
Respondents to (%) (%) watching (%)
know or
hearing
Uneducated 30 15 50.00 6 20.00 9 30.00
SLC and 60 15 25.00 6 10.00 39 65.00
Below
Above 60 36 60.00 8 13.33 16 26.67
Bachelor
Total 150 66 44.00 20 13.33 64 42.67
Note: Researcher’s Survey, 2018

The table 4.6 indicates that the reaction of respondents in term of their educational
status. To see the ignorant respondents, 50 percent respondents wanted to know
the meaning of advertisement, 20 percent of respondents are highly interested
whereas 30 percent are dull audience. Similarly, 25 percent of respondent having
the qualification SLC and below opined that they want to know only the meaning
of advertisement, 10 percent of the respondents are found to be highly interested to
the advertisement whereas 65 percent of respondents are seemed to be mere
audience.

In the last group having educational above bachelor, 60 percent of respondents

want to know what advertisement means, 13.33 percent are curious about
advertisement while 60 percent are only audience. Taking about the third group
having graduate degree, 26.67 percent respondents viewed that they are only
conscious to the meaning of advertisement.

51
 Figure: 4.6
Educational-wise reaction to the advertisement

40
35
No. of Respondents

30
25
Try to know
20
Curious
15
Just watching or hearing
10
5
0
Uneducated SLC and Below Above Bachelor
Education Wise

The figure 4.6 shows that the majority of uneducated and above bachelor
respondents group are found to try to know the advertisement. The SLC and below
groups are found to be meaning of advertisement.

4.1.7 Effects of Electronic Advertising on consumers’ purchasing decision

The result of consumers’ reaction in this regard is presented in the table 4.7.

Table: 4.7
Effect of Electronic Advertising on consumers' purchasing decisions
Description No. of respondents (N) Percentage (%)
Advertisements induced to buy 18 12
Needed 72 48
Both of them 60 40
Total 150 100.00
Note Researcher’s Survey, 2018

52
The table 4.7 shows that out of 150 respondents, 18 respondents are found to be
the customers of the product because they are influenced by the advertisement, 72
customers that they became customer of the product because of their need no due
to the effect of advertisement whereas 60 customers are found to support both of
the reasons. Thus, from this result it can be concluded that majority of the
respondents used the particular product to fulfill their needs.

Figure: 4.7
Effect of Electronic Advertising on consumers' purchasing decisions

12%
40%
Advertisements induced to buy
Needed
48%
Both of them

The figure 4.7 shows that out of total respondents, 12 percent respondents are
found to be the customers of the product because they are influenced by the
advertisement, 48 percent responded that they became customer of the product
because of their need no due to the effect of advertisement whereas 40 percent
customers are found to support both of the reasons. Thus, from this result it can be
concluded that majority of the respondents used the particular product to fulfill
their needs.

53
4.1.8 Consumers preferences for the product
Consumer prefers different product by considering various factors. Advertisement
is also one of the important factors which affect the consumers’ preferences of the
particular product. The result of the consumer preference to various type of
product is presented in the table 4.8.
Table: 4.8
Consumers’ preferences to the product
Description No. of respondents (N) Percent (%)
Product frequently advertised 120 80
Product not advertised 30 20
Total 150 100.00
Note: Researcher’s Survey, 2018
The table 4.8 represents that the number of consumers’ preferences to the product.
Out of the total 150 respondents, 120 respondents responded that they prefer the
frequently advertised product whereas, 30 respondents opined that they prefer to
buy the product that is no advertised.

Figure: 4.8
Consumers’ preferences for the product

20%

Product frequently advertised

Product not advertised
80%

54
The figure 4.8 clearly shows the number of consumers’ preferences to the product.
Out of the total 150 respondents, 80 percent respondent responded that they prefer
the frequently advertised product whereas, 20 percent respondents opined that they
prefer to buy the product that is no advertised.

From the analysis it can be concluded that majority of consumers’ give the priority
to the frequently advertised product.

4.1.9 Consumers’ preferences to the means of advertisement

Consumer prefers different means of advertisement according to their need,
interest and priority. There are various means of advertisement available in the
market like newspaper, magazine, television, radio, pamphlets and posters etc. The
situation of consumers’ preference to the various means of advertisements is
presented in the table 4.9.

Table: 4.9
Consumers’ preferences for the means of advertisement
Description No. of respondents (N) Percentage (%)
Newspaper 18 12
Magazine 9 6
Television 108 72
Radio 12 8
Pamphlets & Posters 3 2
Total 150 100
Note: Researcher’s Survey, 2018
The table 4.9 represents that the number of respondents preferring the means of
advertisement. Out of the total of 150 respondents, majority of respondents i.e.
108 respondents responded that they prefer the television whereas rest of the

55
respondent opined that they prefer Newspaper, Magazine, Radio and Pamphlets &
Posters by 18, 9, 12, 8 and 3 respondents respectively.
Figure: 4.9
Consumers’ preferences to the means of advertisement

2%

8% 12%
6%
Newspaper
MAGAZINE
Television
Radio
72% Pamphlets & Posters

The figure 4.9 explains that the number of respondents preferring the means of
advertisement. Out of the total of 150 respondents, majority of respondents i.e. 72
percent responded that they prefer the television whereas rest of the respondent
opined that they prefer Newspaper, Magazine, Radio and Pamphlets & Posters by
12 percent , 6 percent 8 percent 2 percent respectively. From the analysis it can be
concluded that television seems to be the most popular means or media which
plays crucial role to enhance the market of goods manufactured.

4.1.10 Impact of repeated electronic advertisement to attract consumer

attention
The repeated advertisement of various product through various means of
advertisements sometime attracts the consumer attention whereas, sometimes fails
to attract the consumer. Talking about the Coca Cola, the repeated advertisement

56
have helped it a lot to gain good sale of product. The impact of repeated
advertisement to attract consumer attention is presented in the table 4.10.
Table: 4.10
Impact of repeated electronic advertisement to attract consumer attention
Description No. of respondents (N) Percent (%)
Attract consumer attention 90 60
Do not attract consumer attention 60 40
Total 150 100
Note: Researcher’s Survey, 2018
The table 4.10 shows the number of consumer being attracted by repeated
advertisement in the media. Among the total of 150 respondents most of the
respondents i.e. 60 percent are found to be attracted by the advertisement whereas,
40 percent respondents are only seem to have no effect of advertisement. That's
why. It is clear that advertisement are fruitful to lure the consumer.

4.1.11 Consumers response to the adequacy of electronic advertisement

Consumers can receive various useful information regarding the product's
usefulness or benefits, using techniques and is effects on their daily life etc. from
the advertisement. The situation of consumers’ response regarding the adequacy of
advertisement is presented in table 4.11.

Table: 4.11
Consumers' response to the adequacy of advertisement
Description No. of respondents (N) Percent (%)
Seek for additional information 114 76
Adequate information 36 24
Total 150 100
Note: Researcher’s Survey, 2018

57
The table 4.11 shows in brief the consumers reaction to the adequacy of the
advertisement. Among the total respondents, 76 percent respondents wanted some
more information to be added in the advertisements whereas for 24 percent
responded that the content of the advertisements are adequate i.e. they are fully
satisfied with the information received from advertisement of particular product.
Therefore, from above analysis it can be concluded that majority of consumer are
willing to add additional information in the advertisement so that the
advertisement would be adequate enough to accomplish the demand of the
customer.

4.1.12 Consumers’ preference to the product having same price and quality
The consumer may give different preference to the product having same price and
quality due to the effect of advertisement the result of the consumers preferences
towards such product due to the impact of advertisement can be presented in table
4.12.

Table: 4.12
Consumers’ preference for the advertised and non-advertised products of
Cocacola
Description No. of respondent (N) Percent (%)
Advertised product 126 84
Non advertised product 24 16
Total 150 100
Note: Researcher’s Survey, 2018
The table 4.12 shows the preference of consumers’ to the product having same
price and quality out of the total 150 respondents 84 percent respondents gives
preference to the advertised product whereas 16 percent respondents gives
reference to non advertised consumers.

58
4.1.13 Impact of electronic advertisement on customer
Some advertisements create positive impact among the consumers regarding the
advertised product while sometimes it may fail for this. The results of survey on
this regard are presented in table 4.13.

Table: 4.13
Impact of electronic advertisement on customer
Description No. of respondents (N) Percent (%)
No impact 120 80
Positive impact 30 20
Total 150 100
Note: Researcher’s Survey, 2018
The table 4.13 shows the role of the advertisement to attract the consumers. from
the analysis I can be found hat, out of the total 150 respondents, 80 percent
respondents could not say whether they decide to buy the product or not after they
saw the advertisement broadcast in the television and only a few percent of people
i.e. 20 percent opined that they will purchase the product after they saw the
advertisement broadcast in the television. It proves that advertisement helped to
the majority of customer's recall the brand's name to some extent but the purchase
decisions is not fully depended upon the advertisement.

4.1.14 Effectiveness of electronic advertisement of Coca Cola

The advertisement of the Coca Cola sometimes reaches to the target group while
sometimes it fails. The result of the effectiveness of the Coca Cola is presented in
the table 4.14.

59
 Table: 4.14
Effectiveness of advertisement of Coca Cola
Description No. of respondents (N) Percent (%)
TV 120 80
FM 30 20
Total 150 100.00
Note: Researcher’s Survey, 2018
The table 4.14 shows that he effectiveness of the advertisement of Coca Cola.
From the analyses of the table it can be concluded that 80 percent of the
respondent are familiar with the advertisement of Coca Cola on TV and 20 percent
of the respondents are familiar with the advertisement of coca cola on FM which
indicates that advertisement very much effective to introduce the product to the
customer.

4.2 Major Findings of the Study

After presentation and analysis the data, in this chapter some important findings
are given for study. The major findings are given below;. .
 The situation of gender wise reaction to advertisement shows that 64
percent female are concerned with the meaning of advertisement whereas,
68 percent male are concerned with the meaning .From the above data, it
can be concluded that female respondents seems to be or concerned with
the meaning of advertisement than male.
 Considering the reaction of consumer on advertisement majority of people
below 15 years are found to be passive audience. Overall, it is clear that
almost 10 percent respondent are only conscious about what advertisement
means and only 42 percent are highly interested about advertisement while
48 percent respondent are found to be dull audience.
 The educations wise reaction on advertisement shows that majority of
uneducated people are particular on meaning of advertisement. Among the
60
 graduate and above graduate people 60 percent and 60 percent respectively
just want to know the meaning of advertisement and 30 percent just watch
the advertisement trying to get nothing from it. Likewise, people among
S.L.C and S.L.C level are mostly found to be dull audience. More than 60
percent of them just watch the advertisement and gain nothing from it.
 The study have found that majority of people 80 percent prefer frequently
advertise product whereas only 20 percent people prefer not advertised
product which shows that a product need frequent advertisement in order to
run successfully.
 In context of means of advertisement majority of people prefer television
then other means of advertisement like newspaper, magazine, radio,
television and pamphlet etc. which clearly shows that television plays
crucial role in advertising.
 In relation to repeated advertisement it is found that more than 60 percent
consumer are attracted by the repeated advertisement. So, the studies have
found that repeated advertisements are fruitful to lure consumer.
 Majority of people 76 percent wants some more information to be added in
advertisement which shows that advertisement is not able to fully satisfy
the consumer opinion towards advertising.
 It is found that 84 percent people give preference to advertised product in
spite of the substitute product with same price and quality which shows that
advertising is a life blood for every product.
 In context of impact of advertisement on customer 20 percent responded
that advertisement play good role to give positive impact about the product.
 64 percent respondent are influenced by Coca Cola due to its quality
which shows that quality is a major thing to influence the people to buy the
product but price, scheme, advertisement plays equal important role in
order to fully influence the people.

61
 CHAPTER- V
SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary
Advertisement helps to sale mere and more product and services, which leads the
producer to mass production, which in turn creates job opportunity to the
unemployed population of the country and certainly increases the living standard
of those people. Thus advertisement directly effects in the developing of the
economy of the country.

Real marketing situation study is important in marketing and advertisement field.

It helps to study the target audience choices, preferences, tastes, desires and their
regular media habits. This information provided by the target audiences becomes
very useful while determining advertisement for promoting the product. Moreover,
the nature and types of commercials preferred by the customers, emphasis they
provide for different product features, their likes and dislikes for a particular
product, their expectation towards advertisement in future, the ability of the
current advertisement to influence the customers, etc could be easily ascertained
through this type of research activity, if conducted in mass selling. This
information becomes very useful in better understanding of the market situation
and in clarifying the proverb "King of the market place.

So many research works has been done to find out what factors make an
advertisement effective to sell their objectives, how the advertisements pay back.
Research works had been seen in national or international levels by students,
professionals and businessmen from the perspective or eye of advertisers. There is
very rare effort had been made to see the advertisement from the consumers'

62
perspective, how they feel, behave and react to the advertisement in general and its
subsequent effect on their buying decision process?

The researcher has aimed to study the advertising from consumers' perspective.
This study aims to understand the consumers' attitude and perception towards
advertisement and its subsequent effect on buying decisions. This study "Effects
of Electronic Advertising on Buying Decisions of Coca-Cola Consumers" is done
through the data collected from primary source through questionnaire and
interview method and secondary source is also used for limited purpose within the
scope of present study. 150 questions covering different age, gender, educations
are used to collect the information regarding the consumers’ view about
advertising.

To get insight on the subject matters, for the conceptual clearance, to minimize the
likely chance to repeat same works, to rescue from doing the dead in task and the
related literature, books, articles and the previous studies in the subject were
studied and complete bibliography was maintained.

5.2 Conclusion
From the major findings, consumers have positive attitude towards advertising but
they are skeptic on the performance of the product as claimed by ads. Advertising
is widely accepted information source to know, remind and update about old and
new products. It is clearly seen that majority of the people have the habit of
watching advertisement and out of them women are more curious than men in
watching advertisement which indicates that advertisement is a popular means to
enhance sale of any product. In addition to this majority of people of different age
group as well as different educational class and gender prefer musical programs as
compared to other types of programs which indicate that musical programs are
more popular among the people than any other programs. Likewise, majority of
63
people prefer the product which are frequently advertised rather than the product
hat not advertised frequently although they are of same nature and quality but it is
also true that some of the consumer buy the product because of their necessity not
due to advertisement.

In context of Coca Cola it is found that this Coca Cola have become effective to
make consumer familiar about the product but many people are influenced by the
quality not only by the advertisement. Thus, it can be concluded that advertising
seems play crucial role in enhancing the market of goods manufactured. It is
mostly seen that consumers having positive attitude towards advertising, perceived
advertising positively and have credibility towards advertising and are more likely
to buy advertised products and vice versa.

5.3 Recommendations
On the basis of the finding of the study following suggestion or recommendations
are recommended:
 The majority of respondents of different age group and educational back
ground prefer musical program rather than other program so it is essential
to the producer and advertiser to make their advertisement in musical form
or broadcast advertisement as a musical program.
 The most of the respondents have the habit of watching advertisement and
it is more popular with women consumers. So, the advertiser and producer
should give preference to the advertisement by focusing more to the women
advertisement.
 Consumers have already been familiar with the product. That’s why, it is
suggested to provide very entertaining types advertisement which creates
positive image towards the product.

64
 It is specified that most of the consumer prefer advertised product than non
advertised product. So it is recommended that manufacturers must advertise
their product in order to enhance their sale.
 From the analysis, it is obvious that every advertisement has some impact
on the consumer. Purchasing decision of the consumers depends on the
need of the consumer so advertiser should try to create the necessity of the
product by effectively presenting the product through different media.
 Some advertisements make negative attitude in the consumers’ mind
towards the product so advertisers should understand consumers’ reaction
about advertisement while making an advertisement.
 Advertisers have to advertise their product, considering their targeted
consumer such as; if the targeted consumers are young, old, graduate then
advertisement should be entertaining.
 The advertisement of Coca Cola product is very much effective to leave a
positive impact upon consumer regarding the product and majority of the
respondent prefer the quality of the product rather than other variables. So,
all manufactures of food product should produce a product having good
quality and advertise their product effectively which helps to increase their
market share rapidly.
 After analyzing the study, the information included in advertisement is not
sufficient and majority of the respondents are willing to get the additional
information from the advertisement regarding the various aspects of the
product. Thus, advertise manufactures and producer should include
sufficient information so that consumer can be satisfied regarding the
matters.

65
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Positioning (Unpublished Master’s Thesis). Tribhuvan University,
Kathmandu.
Stanton, W. J., Etzel, M. J., & Walker, B. J. (2002). Fundamentals of
Marketing. New York: McGraw Hill.

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Takemura, A.(2012). Challenges facing the profession of advertising in the
digital age: An empirical study of Swedish advertising professionals,
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www.birgunjfm.com
www.explorenepal.com/ntv
www.nepalnews.com
www.radionepal.org
www.worldofcoca-cola.com

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 Questionnaire
Appendix-1

Dear Ladies and Gentlemen;

This is the preparation about the Research Thesis on “Effect of Electronic
Advertising on Buying Decisions of Coca-Cola Consumers” as a part of the
requirement for Masters of Business Studies (MBS) students of Tribhuvan
University. I shall be grateful to have your opinion in this regard.

Thanking you,
Sanjay Shrestha

Name:
1. Gender: Male Female
2. Age: below 16-25 26-45 Above 45
3. Education: Uneducated SLC and Below Above Bachelor

1. What sorts of advertisement do you prefer?

a) Musical b) Good wording c) Simple d) All Types

2. What is your reaction when you watch or hear advertisement?

a) Try to know what it means
b) Curious about it
c) Just watch it
d) Switch off the radio or television

3. What factors influence you to buy Coca Cola?

a) Quality b) Price c) Scheme d) Advertisement

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4. Which types of media would you prefer?
a) Newspaper
b) Magazine
c) Television
d) Radio
e) Pamphlet

5. Is there any effects of advertisement on consumers’ purchasing decisions?

a) Advertisements induced to buy b) Needed c) Both of them

6. What product do you prefer?

a) Frequently advertised b) Not advertised

7. What is the impact of repeated advertisement to attract consumer

attention?
a) Attract Consumer attention b) Do not attract consumer attention

8. What do you think about the adequacy of advertisement?

a) Seek for additional information b) Adequate information

9. If there are similar kind of product in the market in term of price and
quality which product would you choose?
a) Advertised b) Not advertised

10. What impact does advertising create?

a) Positive impact b) No impact

11. Have you seen the effectiveness of advertisement of Coca Cola?

a) Seen b) Not Seen

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 Appendix-2

A Brief Introduction of Coca-Cola

Coca-Cola, or Coke, is a carbonated soft drink produced by The Coca-Cola
Company. Originally intended as a patent medicine, it was invented in the late
19th century by John Pemberton and was bought out by businessman Asa Griggs
Candler, whose marketing tactics led Coca-Cola to its dominance of the world
soft-drink market throughout the 20th century. The drink's name refers to two of
its original ingredients, which were kola nuts (a source of caffeine)
and coca leaves. The current formula of Coca-Cola remains a trade secret,
although a variety of reported recipes and experimental recreations have been
published (www.worldofcoca-cola.com).

The Coca-Cola Company produces concentrate, which is then sold to licensed

Coca-Cola bottlers throughout the world. The bottlers, who hold exclusive
territory contracts with the company, produce the finished product in cans and
bottles from the concentrate, in combination with filtered water and sweeteners. A
typical 12-US-fluid-ounce (350 ml) can contains 38 grams (1.3 oz) of sugar
(usually in the form of high fructose corn syrup). The bottlers then sell, distribute,
and merchandise Coca-Cola to retail stores, restaurants, and vending
machines throughout the world. The Coca-Cola Company also sells concentrate
for soda fountains of major restaurants and foodservice distributors. The Coca-
Cola Company has on occasion introduced other cola drinks under the Coke name.
The most common of these is Diet Coke, along with others including Caffeine-
Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Zero Sugar, Coca-Cola
Cherry, Coca-Cola Vanilla, and special versions with lemon, lime, and coffee.
Based on Interbrain’s "best global brand" study of 2015, Coca-Cola was the

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world's third most valuable brand, after Apple and Google. In 2013, Coke products
were sold in over 200 countries worldwide, with consumers drinking more than
1.8 billion company beverage servings each day.

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